UCC Document Community

One thing I'd add is to ask your bank about their specific timeline for the cautionary filing. Some lenders file these 30-60 days before closing, while others do it much closer to the loan date. Since your equipment installation is in 30 days, you'll want to make sure the timing aligns properly with your funding needs. Also, if you're working with any equipment vendors or other creditors, give them a heads up about the filing so they're not caught off guard when they run UCC searches. Transparency goes a long way in maintaining good business relationships during the loan process.

I went through something similar last year with a $200k equipment loan. The key thing that helped me was getting a clear written timeline from the bank about their cautionary filing process. My lender filed the cautionary UCC about 45 days before closing, then amended it with specific equipment details once we finalized the purchase agreements. What really saved me headaches was asking for copies of everything they filed - you'd be surprised how often there are small errors in debtor names or addresses that are easier to catch early. Also, make sure your loan agreement specifically references what happens to the cautionary filing at closing. Some banks automatically terminate and refile, others just amend. Having that clarity upfront prevents confusion later when you're trying to track what's actually on file against your company.

As someone new to UCC filings, this thread has been incredibly helpful! I'm dealing with a similar situation where we're trying to figure out equipment definitions for our first UCC filing. One question that keeps coming up - when you mention "including but not limited to" language, does that create any risk of the description being too broad? Our attorney mentioned something about needing to be "reasonably specific" but I'm not sure where that line is drawn. Also, for those who've used document checking tools like Certana.ai, do they help with initial filings or just amendments and continuations?

As a newcomer to UCC filings, I'm finding this discussion really enlightening! I'm curious about the timing aspect - if you have dual-use equipment like those computers that change function, do you need to file amendments every time their primary use shifts? Or does the functional category language like "computer equipment used in debtor's business operations" provide enough flexibility that you're covered regardless of whether they're being used for manufacturing or office work on any given day? Also wondering if there are any industry-specific considerations for equipment definitions that might not be obvious to someone just starting out with these filings.

I've been using Certana.ai for UCC document verification on our deals and it's been a game changer. You can upload the UCC 9210 search results along with the company's charter documents and it instantly highlights any inconsistencies or red flags. Saved us from missing a critical debtor name variation just last month.

One more tip - if you're dealing with a multi-entity acquisition structure, make sure you run UCC searches on all related entities including subsidiaries and holding companies. Sometimes equipment financing gets done at the parent level but the UCC filings are against different entities in the corporate structure. Also worth checking if any assets were recently transferred between entities as those transactions might have triggered new UCC filings or amendments. The last thing you want is to miss a lien because you only searched the direct target company.

Update us on what you decide to do! This is exactly the kind of situation that could help others avoid the same mistake. And definitely get that legal advice - $180k is too much to risk on forum advice, even good forum advice.

As a newcomer to UCC filings, this thread is both incredibly helpful and terrifying! I had no idea there was such a distinction between regular UCC-1 filings and fixture filings. Dylan, your situation really highlights how easy it is to miss these critical details. I'm curious - for those of you who do dual filings as a precaution, do you find that creates any complications down the road, or is it pretty straightforward? Also, are there any good resources or checklists that help determine when equipment might be considered a fixture? I want to make sure I don't make the same mistake when I start handling larger equipment loans.

Just to add one more data point - I had a similar issue with gym equipment for a small fitness studio. The dealer tried the same 'small business equals consumer goods' argument. Ended up having to cite the official UCC comments to convince them. Your cafe equipment is definitely equipment, not consumer goods.

As a newcomer to UCC filings, this thread has been incredibly educational! I'm working on my first secured transaction and was actually unsure about this exact classification issue. The distinction between business size and intended use makes perfect sense now. Quick question - when you're describing the collateral on the UCC-1, do you need to specifically state "equipment" or is a detailed description of the actual items (like "commercial espresso machines, refrigeration units") sufficient? Want to make sure I get the terminology right on my filing.